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Help me avoid wash sale rule in my first TLH

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  • Help me avoid wash sale rule in my first TLH

    Hello all,

    This is my first opportunity to try and TLH and I want to make sure I avoid a wash sale rule. A brief overview of my accounts are as follows

    Taxable account:
    only VTSAX at multiple different cost basis(awaiting the breakdown from vanguard as we speak)

    VFIAX (vanguard 500 index fund)
    VTWAX(vanguard total world stock)
    DFWIX (DFA World ex us core equity)
    IWD (Ishares russel 1000 value ETF)
    Plus more all from a previous financial adviser that I have since fired(the only ones that have a significant amount of money in it is VFiAX and VTWAX

    VINIX(vanguard institutional index fund(LArge blend)
    VIEIX (vanguard extended market index fund
    TBIIX(TIAA-cref bond index fund-institutional class)

    So far everything is on re-invest dividends but as I research TLH I'm afraid parts of my Roth IRA and 403b/457b might cause a wash sale. Is VTSAX-VFIAX-VINIX-IWD too similar to do TLH and if so is there a way to get around this problem?

    Possible solutions
    1)Should I sell everything in my roth and if so what should I sell too?
    2)Regarding my 403b/457b those are the lowest ER funds in the entire account so not much wiggle room.

    My goal asset allocation is around 90/10 so I do want to keep the same amount in equities.

    as always, Thanks in advance.

  • #2
    1- read up on IRS wash sale rule. 401k not mentioned so i fall on side of not included.
    2- learn about substantially identical. VTSAX does not equal VFIAX.
    3- either way, this is an easy swap. Sell all VTSAX with loss/replacement shares and buy VLCAX.

    this is why simplicity helps.